Concentrating Solar Power Market Expected To Boom This Year

Despite competitive PV prices and lingering environmental and financing concerns, concentrating solar power (CSP) technologies are poised for gigawatt-scale adoption this year, according to a new report from Lux Research.

Additionally, future growth is expected to remain healthy as the generation stack increasingly incorporates CSP plants in excess of 100 MW. However, in order to land their share of this emerging market, utilities and developers alike will need a clear grasp of the economic and performance factors driving adoption of CSP’s four main technology contenders, the company says.

The report compares the economics and performance of three key CSP technologies - parabolic trough, power tower and Stirling thermal systems - as well as CSP's competitor, photovoltaic systems. It examines the application of each technology in a hypothetical 100 MW plant and compares their levelized costs of electricity (LCOE), capital costs and internal rates of return (IRRs), among other factors driving adoption.

"After a few fits and starts, solar thermal projects have begun to make a big impact on the generation mix in both Spain and the Southwest U.S.," says Ted Sullivan, a Lux Research senior analyst and the report's lead author. "Though trough technologies have been dominant to date, we expect power tower solutions to gain increasing prominence. [Their] technology is proven, because their integration with thermal storage technologies smashes through the fundamental constraint that has held solar back to date: intermittency."

Lux Research found that dish Stirling technology offers the lowest capital expenditures. A more modular technology, dish Stirling leads the pack in terms of cost, due to its cheap Stirling engines. Meanwhile, the costly mirror fields of parabolic trough plants make them the priciest of CSP options, while power-tower systems are relatively cost competitive. Driven by high module costs, PV systems fall somewhere in the middle.

Conventional trough and tower CSP technologies lead in performance, the report adds. Parabolic trough plants have the highest peak efficiency, but they come second in yield and capacity factor, while power tower is the top performer on system yield and capacity factor due to a highly efficient turbine cycle and dual-axis tracking. Dish Stirling and PV, in contrast, both underperform, with lower capacity factors and lower energy yield.

Dish Stirling technology also leads in LCOE. LCOE (measured as $/kWh) neatly synthesizes the total operating costs of a power plant, and is key to determining the IRR to the project investor, Lux Reseach says. Here, dish Stirling leads due to its low cost and decent performance, making it a good substitute for PV.

However, power-tower technology is hard on its heels and is expected to remain a viable contender for years to come. Parabolic trough systems, by comparison, have the highest LCOE of any CSP plants due to their expensive capex, and high operation and maintenance costs. PV systems currently trail the pack on LCOE due to relatively high capex and mediocre performance, the report adds.

SOURCE: Lux Research

GE Supplying CSP Steam Turbines for Spanish Plants

GE Oil & Gas says it has used its petrochemical industry steam turbine technology expertise to aid in the commercialization of the first GE 50 MW steam turbines developed for large-scale parabolic-trough concentrating solar power (CSP) applications.

Three GE Oil & Gas 50 MW turbine units will be deployed by Acciona Energy by the end of March for two solar power projects in Spain. One unit will be deployed at the new CSP plant in Majadas, Spain, and two will be deployed at the company's Palma del Rio, Sevilla, facilities.

The projects mark the first time that GE has designed CSP trains with generators located between two steam turbines: a reheat configuration to increase the overall cycle efficiency and systems' capacity, the company says. The technology features a layout configuration that is able to combine  steam turbine optimized efficiency and an overall cycle efficiency above 39%.

SOURCE: GE Oil & Gas

Spanish Government cuts solar subsidies for new and existing plants

On Christmas Eve the Spanish Government made the controversial decision to again cut the financial support offered to solar power generators. The unstable budget situation in the country has forced the Government into a corner in which it will now make significant cutbacks to subsidies for PV plants installed on the Iberian Peninsular, with the additional reduction affecting existing as well as new installations over the next three years.

EuPD Research says that the impact this “breach of trust” is likely to have is unpredictable.

The Government’s proposal involves a cap being placed on the number of hours of subsidized generation that solar plants can sell to the grid. Where up to 1,753 hours could have been fed to the grid by fixed PV systems in the past, a maximum of 1,250 processing hours will be remunerated over the next three years.

Additionally, systems mounted on single axis trackers will now only be funded for the first 1,644 hours; systems with double axis trackers will see payments for the first 1,707 hours only. An adjustment that will apply to all PV plants connected to the grid by September 2008. As a form of reimbursement, PV plants will receive the feed-in tariff payments for three more years – an extension from the original 25 years to 28.

EuPD Research’s Daniel Pohl reports that according to Spain's Deputy Industry Minister, Pedro Marin, these reductions are necessary to grant the government "some leeway" in keeping consumer energy prices at a moderate level while Spain navigates its way through tough times of economic uncertainty. However, Pohl points out that the opposite is to be heard from the side of investors and analysts. “Such hasty changes are considered a breach of trust and increase uncertainty throughout the whole renewable energies industry in Spain,” explains Pohl.

“Exactly how the latest cut backs to solar funding will be felt throughout the industry cannot as yet be foreseen. However, analysts at EuPD Research believe that the impact will be significant,” continued Pohl.

“But not only the PV industry and its directly or indirectly related spin off industries will suffer from the decision made in Madrid – millions of Spanish senior citizens and pensioners, as well as fund investors all over the world will feel the impact of this decision,” said Markus A.W. Hoehner, CEO of EuPD Research, based in Bonn, Germany.

The Valencian Association of Energy Companies (AVAESEN), which represents approximately 170 companies and organizations linked to the region’s renewable energy sector, is suing the Government over the new law.

Spain Surpasses USA in installed Solar

When Spain's latest solar power plant came on-line this week it brought the county's total power generation from solar to 432Mw, surpassing that of the USA by 10Mw.
The latest Spanish plant known as La Florida, situated in Badajoz province, is a parabolic trough design covering 200Ha of land with an output of 50Mw, with a heat storage facility using moulten salt.

Spain is also reported to have around 20 other new solar power plants in an advanced stage of construction which will add a further 600Mw of capacity by the end of the year 

Spain Seeks a Problem to FIT Deficit

When Spain originally announced its FIT rates - its economy was booming ... and the idea of using its sunshine to produce electricity sounded like a good idea ... and hopefully would lead to the kind of success experienced by Germany in terms of new company growth, job creation, and much more.

They were right ... it did attract a lot of solar developers but now that the economy has turned south - paying this solar subsidy is becoming more and more difficult and looking for a solution is a priority of the government.  Here is the latest proposal being floated as reported below by Bloomberg.

Spain may limit the hours during which photovoltaic-power plants may earn subsidies as part of a plan to rein in electricity costs for consumers, according to a government official involved in talks with the owners.

It’s too early to say how much the cut might cost companies that generate the solar power using photovoltaic panels, said Antonio Hernandez, general director of energy policy at the Madrid-based Industry Ministry. He said the ministry aims to reach an agreement during the next few weeks of negotiations.

“We want to prevent electricity becoming more expensive as the sun shines more,” Hernandez said in a telephone interview this week. “One of the possibilities is that the number of hours that subsidies can be earned would have limits.”

Plant operators and trade groups have held talks with ministry officials for months and threatened to sue the government for as much as 1 billion euros ($1.4 billion) should it cut the subsidies. The aid, which is added to consumer bills, is guaranteed for 25 years under a 2007 law, plant operator T- Solar Global SA Chief Executive Officer Juan Laso has said.

Hernandez is searching for a formula to hold down power prices for industry and households as the government tries to revive an economy emerging from its worst recession in 60 years.

The revenue from consumers’ electricity bills doesn’t fully cover the cost of delivering power under the current system, leaving utilities to finance a so-called tariff deficit that’s forecast to total about 3 billion euros just for 2010.

Renewable energy has become the focus of power-rate negotiations as Hernandez tries to meet a legal obligation to eliminate the tariff deficit by 2013.

Spain’s power regulator forecasts that the subsidies to renewable energy-producers plus those to co-generation, which includes more energy-efficient uses of fossil fuels, will reach 6.8 billion euros this year, 15 percent more than forecast, Europa Press reported Oct. 19.

Spain Proceeds With Plans to Cut Solar Subsidies After Talks Break Down

Spain is proceeding with plans to cut prices for solar power from new generators, the Industry Ministry said, after talks on broader changes to renewable energy subsidies broke down last week.
Prices for power from ground-based panels may be cut by 45 percent while photovoltaic generators mounted on large roofs face a 25 percent reduction and plants on small roofs will see a 5 percent cut, the ministry said in a statement.

The price cuts are included in a draft law sent to the national energy regulator for consultation.

Discussions on broader changes to subsidies for solar power were suspended after ministers and company executives failed to agree on prices for existing plants. Prime Minister Jose Luis Rodriguez Zapatero’s government wants to keep a lid on electricity costs by paring back a 2007 law granting above- market prices for clean-energy producers.

Spain’s 52,000 photovoltaic-panel installations earn as much as 440 euros ($573) a megawatt-hour, or almost 10 times the futures price for 2011 power in the wholesale market.

A spokesman for Industry Minister Miguel Sebastian said in April the government may cut the rate paid to existing plants in addition to ones yet to be built, as the government seeks to boost the competitiveness of Spanish industry by reining in power prices.

Funds including London-based HG Capital and Denmark’s AP Pensions have argued that the government was reneging on its legal obligation to maintain the subsidies for 25 years.

The Spanish Banking Association estimated domestic banks have loaned 40 billion euros to renewable-energy projects. Some 600 photovoltaic plant operators may face bankruptcy if the subsidies are cut, the Photovoltaic Industry Association has said.

Source:  Solar Knowledge Blog

50 MW CSP Plant in Spain Becomes Operational

Seville, Spain: Abengoa Solar Begins Commercial Operation of Solnova 1

Abengoa Solar has initiated commercial operation of Solnova 1, the new parabolic trough technology plant located at the Solúcar Platform, following the successful completion of the operation and production testing conducted over the course of three days. During this phase plant performance matched theoretical electrical power generation design, thereby validating the tremendous potential of parabolic trough technology.

The Solnova 1 plant incorporates parabolic trough technology developed by Abengoa Solar and has integrated significant design enhancements. Worthy of special mention is the Abengoa Solar-developed ASTRØ parabolic trough collector which ensures far superior precision thanks to its design and exclusive process of construction and alignment.

The accumulative experience gained by Abengoa Solar through its trough pilot plant built in 2007, the use of a motor-driven start-up station, and the expertise of highly specialized technical personnel dedicated to optical alignment, collector manufacturing and process optimisation proved to be key factors in the successful start-up of Solnova 1, a plant built by Abener.

Santiago Seage, CEO of Abengoa Solar, emphasized that reaching theoretical design capacity during production testing constitutes a significant milestone.

"Our technological progress and accumulative expertise have enabled us to reach our goals much sooner than we had anticipated. We will use this experience in the two 280 MW CSP plants planned for the United States in Arizona and California," he added.

With its 50 megawatts of power, the new Solnova 1 solar station will generate enough clean energy to meet the electricity needs of 25,700 homes, while preventing the emission of approximately 31,400 tons of CO2 into the atmosphere each year.

Solnova 1 is made up of around 980,000 square feet (300,000 square meters) of mirrors that cover an area totalling approximately 280 acres (115 hectares). The plant employs technology which concentrates solar radiation onto a heat-absorbing pipe inside of which flows a liquid that reaches high temperatures. This fluid transfers its energy to the water vapor that reaches a turbo-generator, where it expands to produce electricity.


Source:   Solarbuzz    Further details about: Abengoa Solar